Last Thursday President Trump enacted tariffs of 25 percent on steel imports and 10 percent on aluminum imports, a move he first announced earlier in March. However, the president exempted Canada and Mexico from trade sanctions. Canada is the No. 1 supplier of both metals to the U.S. It represents about 41 percent of aluminum imports and 16 percent of steel imports.
An article in The Wall Street Journal states that the tariffs could raise car prices by $300.
Article I of the U.S. Constitution says only Congress has the power to set tariffs. However, Trump is using Section 232 of the Trade Expansion Act to impose this set of tariffs. It’s a law passed in 1962 that allows tariffs to be imposed by the president when imports are deemed to be damaging to U.S. national security.